A2Z Infra Engineering Limited

Industrials — Engineering & Construction · NSE

₹13.80+₹0.01 (+0.07%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: Strong business and financial position, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of A2Z Infra Engineering Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

A2Z Infra Engineering Limited offers engineering, procurement, and construction (EPC) and facility management services in India and internationally.

IndustryEngineering & Construction

SectorIndustrials

Employees3,814

Annual revenue₹386 Cr

How does it make money?

Turns over ₹386 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 3,814 employees supports ₹10.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹10.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 18.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE14.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +11% while net margin moved -103% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+11%

Margin effect-103%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 3.02x is high — earnings must service borrowings before shareholders see anything
✗ Current ratio of 0.83 — short-term liabilities exceed short-term assets
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only 2.1x — little room if profits dip
✓ Debt has been reduced by 32.4% a year

Quality vs. Valuation

Company Quality

44/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

29/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

69.0x

1.3Y Median

33.0x

16 monthly readings · mean 38.5x · range 26.3x–67.0x

Sector Median

30.1x

median of 3 sector peers

⚠️Current valuation is approximately 109% above its 1.3y median of 33.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 129% above the peer median of 30.1x.

vs. its own history

Expensive

33.0x median over 16 months · +109%

vs. sector peers

Expensive

30.1x median of 3 peers · +129%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

16.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 69% over 3 years.
Return on equity is rising
ROE has improved from -323.0% to 8.8%.
Return on capital is rising
ROCE has improved from -96.4% to 18.7%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 2 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 3.02x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.1 points, from 10.6% to 5.5%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹18 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.83 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 69% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 10.6% to 5.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 109% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 3.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 3%✓ 5.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹18 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.1x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 4% a year✗ 3.4% CAGR
Latest reported year was -24.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

2 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 4 neutral · 5 weak

Market Cap

₹245 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

69.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

4.93x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.2

Profitable

Profitable on a per-share basis

ROE

8.8%

Moderate

Moderate capital efficiency

ROCE

18.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.02x

High

High leverage

Revenue Growth (YoY)

-24.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-75.0%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹18 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-0.7%

Weak

Thin margins leave little room for error

Net Margin

1.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.83

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.03

Defensive

Steadier than the market

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

14.3 / 15.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

35.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹349 Cr	₹388 Cr	₹336 Cr	₹386 Cr	+3.4%
EBITDA	₹37 Cr	-₹47 Cr	₹27 Cr	₹21 Cr	-17.1%
EBITDA Margin	10.6%	-12.0%	8.1%	5.5%	—
PAT (Net Profit)	-₹123 Cr	-₹6 Cr	₹9 Cr	₹4 Cr	—
EPS	₹-6.98	₹-0.32	₹0.51	₹0.25	—
ROE	-323.0%	-17.7%	19.9%	8.8%	—
ROCE	-96.4%	0.8%	23.8%	18.7%	—
Total Debt	₹313 Cr	₹198 Cr	₹92 Cr	₹97 Cr	-32.4%
Free Cash Flow	₹49 Cr	₹85 Cr	₹51 Cr	-₹18 Cr	—

🟢 Revenue has grown at 3.4% a year over 3 years.

🔴 EBITDA has shrunk at 17.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 10.6% to 5.5% over 3 years (-5.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹123 Cr to ₹4 Cr.

🟢 EPS has turned positive, from ₹-6.98 to ₹0.25.

🟢 ROE has risen from -323.0% to 8.8% over 3 years (+331.9 pts).

🟢 ROCE has risen from -96.4% to 18.7% over 3 years (+115.1 pts).

🟢 Total Debt has shrunk at 32.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹49 Cr to -₹18 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹461 Cr

Total Liabilities

₹429 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

-₹17 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

36.8%

Corporate Actions

Ex-Dividend Date

22 Sept 2011

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

4 mixed2 general

A2Z Infra Engineering Lower Circuit Today: Price, Data and Peers

Univest, 05 Oct

A2Z Infra Engineering reports FY26 profit, Q4 standalone gain

scanx.trade, 14 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

A2Z Infra Engineering Q1 FY27 Results: Low-Priced Infra Counter in Focus

Kalkine India, 14 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

GACM Technologies Ltd leads gainers in 'B' group

Business Standard, 30 Jul

A2Z Infra Engineering Ltd. (A2ZINFRA) Share Price Rises 9.96% Today

Univest, 03 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

A2Z Infra seeks extension for Q4 and FY26 results submission

scanx.trade, 22 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Revenue growth is negative (-24.4%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingBusiness Quality · Profitability

WeakFinancial Health · Growth · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

4 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑